HI HB1295

Requires all state and county agencies to utilize federal clean energy tax credits under the Inflation Reduction Act of 2022's "elective pay" (direct pay) provisions beginning July 1, 2025

Applies to capital improvement projects using clean energy technology and purchases of zero-emission vehicles qualifying under federal regulations

State and county agencies utilizing federal elective pay provisions become ineligible for state tax credits for the same project or vehicle

Leverages federal provisions that allow tax-exempt entities like state/local governments to directly receive clean energy tax credits previously available only to private developers

Effective date set for July 1, 2050